In recent weeks, the price of Bitcoin has been fluctuating, but overall assessment shows that it has to continue marching higher.
The question many people are asking is, what is driving this growth?
Now listen, there are many factors that continue to make Bitcoin rise in value.
1. Is the Increased interest from influential persons
Top business owners in the financial and economic space. Like Jeff Bezos recently announced he’s investing in cryptocurrency while his rivalry Elon Musk already added $1.5 billion in Bitcoin to its balance sheet. Such information’s give more legitimacy to cryptocurrency and the acceptability level aid the cryptocurrency’s growth. Don’t you think so?
2. The second factor is the upward and down-ward trends, Bitcoin has seen extremely volatile peaks and troughs in its time, from, January to 25th February 2021, the cryptocurrency has moved from $35,000 to $58,000 and down presently between $49.000 and $51,000 US Dollars. At this point, people still have an optimistic view of its upward drive even as its nose driving, study shows that people buy more at this stage.
3. Another reason for Bitcoin’s rise is the growing inflation of the U.S Dollars. While inflation is on the average of 2% each year, recent stimulus spending is poised to greatly increase the level of inflation and decrease the dollar’s purchasing power, with the recent stimulus packages, the United States has added around $2.4 trillion to the economy.
This has many worrying about the inevitable decrease in the dollar’s purchasing power and the rise in inflation.
5. The fifth reason for Bitcoin’s price appreciation is its growing adoption as a payment method. Recently, PayPal announced that it would soon allow its users and merchants to buy, sell, hold, and accept Bitcoin and other cryptocurrencies as a form of payment. This news pushed Bitcoin’s price higher immediately.
6. Lastly, Publicly traded companies purchasing Bitcoin show a high level of confidence in its appreciation. There is a growing narrative of Bitcoin as a safe-haven asset. Recently, a trend started where publicly traded companies were beginning to convert cash in their treasuries over to Bitcoin as a more store-of-value, most notably, is MicroStrategy, a business analytics company, converted $425 million worth of cash in its treasury to Bitcoin.
Since then, a number of companies have followed suit. The confidence that these companies and their investors have in Bitcoin has given increased merit to the concept of Bitcoin as a store-of-value and safe-haven asset.
So, you now know some elements or factors driving the growth we are all witnessing in Bitcoin and cryptocurrency generally.
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